From burn to breakthrough: How Treebo Hospitality Ventures found profitability, tech muscle, and a mid-market play

Treebo Hospitality Ventures (THV) has had a journey marked by turning points—each one nudging the company toward resilience, innovation, and a growing share of India’s fragmented hospitality sector.  

The company began challenging industry norms early on. While most hotels relied heavily on OTAs (online travel agencies) for demand, Treebo invested in building its direct-to-consumer (D2C) channel.

“Today, around 25–30% of Treebo’s business comes directly through our own website —significantly reducing third-party commissions, which has helped support profitability,” says Sidharth Gupta, Co-founder of THV. 

But that wasn’t always the case. At one point, Treebo was burning close to a million dollars a month. “We were forced to rethink when our fundraise stalled,” he recalls. What followed was a sharp pivot to profitability, slashing monthly losses to under Rs 10 lakh, a huge shift driven by operational prudence, technology, and responsible growth.

In a conversation with YourStory, Gupta walks through the company’s biggest pivots—from near-collapse to profitability, and from budget focus to a full-fledged mid-market expansion.

“Today, Treebo is a very different organisation—stronger, more resilient, and less dependent on aggressive spending to grow. Its brand recall, disciplined operations, and technology-first approach allow it to sustain growth while staying focused on delivering the guest experience it promises,” he explains.

COVID-19 as a pivot point

Treebo’s early years were marked by rapid expansion—scaling the hotel network, building brand awareness, and putting systems in place to ensure quality and consistency. As the chain grew, economies of scale kicked in, operating costs declined, and the company became more cash-efficient.

Simultaneously, as the brand gained familiarity, customer acquisition costs dropped. Internally, too, the company streamlined its structures and processes, becoming more agile.

When COVID-19 brought global travel to a standstill, Treebo’s revenues fell to zero. But instead of shutting shop, they doubled down on tech. That period of forced pause led to the birth of Hotel Superhero, Treebo’s all-in-one hotel management SaaS platform.

Initially built for internal use, the platform now powers select Radisson and Accor properties, with plans to launch publicly for independent hotels soon.

The journey: From four hotels to 800+

Treebo’s tech-first approach drove its rapid scale-up, according to Gupta. “Our proprietary hotel management stack helped us expand quickly while maintaining brand standards across diverse geographies,” he adds.

A strong focus on partner satisfaction also played a role. By ensuring transparency and operational excellence, Treebo became a trusted brand partner for independent hotels. Consumer trust—reflected in high guest ratings and repeat bookings—fueled further organic growth.

A mid-market playbook

Treebo Hospitality Ventures initially targeted the budget economy segment. But in recent years, it has expanded ambitiously into the mid-market space. This includes the launch of Medallio (Rs 3,000–Rs 6,000/night range) and partnerships with marquee brands like Radisson (Park Inn & Suites by Radisson) and Accor (Mercure and Ibis).

“The mid-market foray has marked Treebo’s coming of age,” Gupta says. “With broader offerings and deeper industry integration, we are now ready to capitalise on India’s hospitality macro boom.”

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As of 2025, Treebo operates 800 hotels across 110 Indian cities, covering 16,500 rooms. The company recently closed FY24 with Rs 700 crore in gross revenue and Rs 125 crore in net revenue. Over the next five years, it aims to scale its Treebo-branded hotels to 2,000 and its mid-market portfolio to 250 properties.

The company’s REVPAR (revenue per available room) has seen a 20% YoY increase, outpacing the industry average—further underscoring Treebo’s focus on profitability and efficient inventory utilisation.

Culture and what’s next

Even at its toughest moments, Treebo focused on building a culture rooted in fairness and long-term thinking, Gupta says. “We don’t buy loyalty with big salaries—we earn it with how we treat people,” he adds, pointing to the company’s “Ghar Wapsi” trend, where former employees return for second or third stints.

While there’s no IPO on the immediate horizon, Treebo’s recent partnership and fundraise with Accor is seen as a key milestone. “We’re not in a hurry—we want to be ready internally first,” Gupta adds.

With infrastructure growth, rising travel consumption, and a chronic shortage of branded rooms, Treebo believes India’s hospitality market is at an inflexion point. “It’s a massive macro opportunity,” Gupta says—and Treebo wants to be right at the centre of it.